Posted by
T E Schmitz on
Oct 01, 2005; 12:06pm
URL: http://ofbiz.116.s1.nabble.com/OFBiz-Users-VAT-and-rounding-tp135121p135137.html
David E. Jones wrote:
>
> Yes, that's a problem... When the tax rate is 3 digits of precision
> instead of 2 digits then certain numbers are impossible to get as an
> after tax amount with only 2 decimal places...
>
> One option would be to store prices with more than 2 right of decimal
> digits. Another option would be to specify that a certain price
> includes VAT, and then we would have to specify the TaxAuthority party
> and geo IDs and probably the percentage used as a sanity check (should
> still have the tax settings in the database to handle variations on this).
In the UK, we have various tax codes depending on product type.
In our local system, I set the VAT up using two tables:
VAT_CODE: this table contains the name of the VAT code (e.g. 'Standard')
and its abbreviation (e.g. 'S') because it might have to be displayed on
the invoice for each line. (I say might because the rules regarding
invoice structure have recently changed in the UK.)
VAT_RATE: each record is linked to a VAT_CODE; it contains the rate and
a begin and (possibly) end date to cope with rate changes.
>
> Perhaps the biggest problem with having prices that include tax is that
> then you either have to have all sorts of prices for different tax
> authorities, or, well, or I don't know. This wouldn't be a problem if
> are only selling from one place, ie only have one tax "nexus", but
I don't quite understand: is it possible that one web shop might sell
from more than one place?
> Perhaps changing the price to more than 2 digits of precision is the
> best approach...
As described in my previous posting, this won't work for UK invioce line
VAT calculation. It's the per line VAT amount which needs to have 3
digits, not the price. (VAT is on the line subtotal, e.g. on quantity *
product price.) The line VAT is derived from the product gross (VAT
inclusive price) and hence we cannot work from a product net price.
Sorry to throw a spanner in the works.
--
Regards/Gruß,
Tarlika Elisabeth Schmitz
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